Brazil auctions $3.4bn of wind energy projects

Brazil has sold the rights to build new wind farms worth $3.4 billion (£2.1bn) in its latest renewable energy auction. The 39 projects will have a total capacity of 867.6MW […]

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By Priyanka Shrestha

Brazil has sold the rights to build new wind farms worth $3.4 billion (£2.1bn) in its latest renewable energy auction.

The 39 projects will have a total capacity of 867.6MW – enough to meet the demands of 28 electricity distribution firms for 2016.

The wind farms will be installed in the states of Bahia, Ceara, Pernambuco, Piaui, with the greatest number in Rio Grande do Sul (19).

The average price at the end of the ‘A-3’ auction was BRL124.43/MWh (£34/MWh) – a discount of 1.25% from the initial price. Winners have been given three years to bring the projects online.

Although more than 30 solar projects totalling 813MW of capacity were also registered in the auction, they went unsold amid claims prices remain too high.

Last month Brazil also confirmed the companies that won the rights to explore the biggest oil field in Brazil.